What is sustainable growth finance and what is sustainable growth

The method of storing and withdrawing parts and pieces is the most direct and effective.

The sustainable growth rate refers to the maximum ratio at which the company's sales can be increased without issuing new shares and maintaining the current operating efficiency and financial policy.

In the literal definition, development that meets the needs of the present without jeopardizing the ability of future generations to meet their own needs is called sustainable development. They are an inseparable system that not only achieves the goal of economic development, but also protects the natural resources and environment such as the atmosphere, fresh water, ocean, land and forests, on which human beings depend, so that future generations can live and work in peace and contentment.

Sustainable development and environmental protection are both linked and not identical. Environmental protection is an important aspect of sustainable development. The core of sustainable development is development, but it requires economic and social development under the premise of strictly controlling the population, improving the quality of the population, protecting the environment, and making sustainable use of resources.

Development is a prerequisite for sustainable development; People are the central agents of sustainable development; Sustainable and long-term development is the real development.

Sustainable growth rate.

English: growth rate

What it means: The sustainable growth rate refers to the maximum ratio that the company's sales can grow without issuing new shares and maintaining the current operating efficiency and financial policy.

Operational efficiency here refers to net profit margin on sales and asset turnover.

The financial policy here refers to the dividend payout ratio and capital structure.

The formula for calculating the sustainable growth rate.

Sustainable Growth Rate = Net Profit Margin on Sales Total Asset Turnover Earnings Retention Rate Beginning Equity Ending Total Assets Multiplier.

The sustainable growth rate is to maintain the growth rate of the current financial ratio (including the debt-to-asset ratio) and increase borrowing in line with the existing financial structure, i.e., to arrange borrowing according to the increase in retained earnings, with the aim of maintaining the current level of financial leverage and risk. Under the assumption of sustainable growth rate, the level of financial leverage remains unchanged, so that a certain level of financial leverage reflects a certain level of risk, but from the perspective of the impact of external financing and retained earnings financing, sales growth rate, financial structure or capital structure on financial leverage, it is necessary to further **.

I think development is a trend, and growth is a concrete manifestation of it.

Development is the background, and growth is its reflection.

The definition of sustainable development consists of two basic elements or two key components: the "need" and the "limit" on the need. To meet needs, first and foremost, it is necessary to meet the basic needs of the poor.

Constraints on need mainly refer to the limitations that pose a hazard to the capacity for future environmental needs, which, if breached, will inevitably endanger the natural systems that support life on Earth, including the atmosphere, water bodies, soils, and organisms. The key factors that determine the two basic elements are: (1) redistribution of revenues to ensure that natural resources are not depleted for short-term survival needs; (2) reduce the vulnerability of the poor, mainly the poor, to damage caused by natural disasters and agricultural products; and (3) the universal provision of basic conditions for sustainable subsistence, such as sanitation, education, water and fresh air, the protection and satisfaction of the basic needs of the most vulnerable groups of society, and the provision of equal opportunities and freedom of choice for development for all people, especially the poor.

The premise of change is continuous sustainable development, and growth is a concrete manifestation and reflection.

Continue to grow on the basis of the present.

The sustainable growth rate refers to the growth rate that can be achieved by sales without issuing new shares, without changing operating efficiency (without changing sales net profit margin and asset turnover) and financial policy (without changing equity multiplier and profit retention ratio).